[HN Gopher] Intel Honesty
       ___________________________________________________________________
        
       Intel Honesty
        
       Author : surprisetalk
       Score  : 258 points
       Date   : 2024-09-04 15:15 UTC (7 hours ago)
        
 (HTM) web link (stratechery.com)
 (TXT) w3m dump (stratechery.com)
        
       | flerchin wrote:
       | Brutal. Intel processors will be the equivalent of government
       | cheese. Not what anyone wants, but it's what you get with your
       | government dollars.
        
         | brcmthrowaway wrote:
         | I never thought of it that way. Are they going the way of
         | Raythoen/Boeing?
        
         | wklauss wrote:
         | I see the semiconductor industry becoming a bit like the auto
         | industry. A geopolitical pawn, heavily dependent on subsidies
         | and in turmoil due to market forces (switch to electric in cars
         | vs. switch to ARM/RISC in semiconductors)
        
         | KerrAvon wrote:
         | To be clear, the outcome we actually need here is a bulwark
         | against the possibility of China eventually being the world's
         | only producer of leading-edge chips.
        
       | datavirtue wrote:
       | They are building a huge fab in Ohio but I don't see Intel as a
       | going concern that will be around at the date of completion. I
       | fully expect the project to be abandoned.
        
       | davidw wrote:
       | The geopolitical bit of all this is the real wild card. No one
       | really knows what's going to happen there.
        
         | UncleOxidant wrote:
         | Yeah, you've got Apple, Nvidia and AMD heavily exposed to that
         | geopolitical risk, but seemingly not willing to help lessen it
         | by investing in US fabs. Whenever I note this people here and
         | elsewhere say "they're smart to be fabless" but somebody's
         | gotta run fabs and more fabs need to be run in the US and
         | quickly. I realize industrial policy isn't in vogue these days
         | but it might be a good idea for the future of US semiconductor
         | production to arrange some marriages between some of these
         | companies that have a lot of capital and have a lot of need to
         | reduce their geopolitical risk. Our brand of capitalism isn't
         | great at looking ahead more than a quarter or two.
        
           | jjtheblunt wrote:
           | Apple is heavily invested in the new TSMC fab in the US east
           | of the north end of Phoenix, last i read; not sure how
           | arranged that marriage really is, but perhaps tax incentives
           | for TSMC facilitated Apple plans to heavily utilize it.
           | 
           | (trying to find linkable articles...like this
           | 
           | https://www.theverge.com/2022/12/6/23497417/apple-tsmc-
           | phoen...
           | 
           | ) ; p.s. i wonder if only i compulsively balance lisp parens
        
         | moffkalast wrote:
         | The geopolitical bit is that TSMC is building local US and EU
         | fabs in case of a Taiwan invasion. Once those are up and Intel
         | becomes redundant the ad hoc subsidies might just dry up.
        
           | davidw wrote:
           | Sure, but "is building" could be very far from "is able to
           | smoothly switch production if the main plants and some/many
           | of the associated people are war casualties"
        
       | andy_xor_andrew wrote:
       | US chip production really needs its SpaceX moment, but it seems
       | like it will never happen, and we're left with the crumbling
       | empire of Intel.
       | 
       | By "SpaceX moment", I mean a startup entering an impossible
       | market, where the barrier to entry is billions of dollars of
       | research and manufacturing, a market dominated by industry giants
       | from the 60s, and yet still coming out on top somehow.
        
         | cherryteastain wrote:
         | The semi spacex moment already happened - it was when TSMC was
         | founded
        
           | hangonhn wrote:
           | That's such a good insight. It really was the SpaceX moment
           | or maybe we can say SpaceX was the TSMC moment of space since
           | TSMC came first.
        
           | ac29 wrote:
           | 1987?
           | 
           | As near as I can tell there was nothing particularly
           | remarkable about TSMC in the 1980s or 1990s.
        
             | kanwisher wrote:
             | It was one of the first foundries that focused on external
             | ip and not producing its own chips
        
             | newsclues wrote:
             | Tesla and SpaceX both took time before they started
             | generating positive cashflow.
        
             | ska wrote:
             | 20 years for a hardware startup to get really going isn't
             | unusual. One of the other reasons VC likes SAAS. Hardware
             | startups are cash intensive and slow boils, typically.
        
             | NortySpock wrote:
             | Maybe the more generic claim is 'when pure-play foundry
             | companies started earning more money than the "integrated
             | device manufacturer" companies')
             | 
             | https://en.m.wikipedia.org/wiki/Foundry_model
        
         | milesskorpen wrote:
         | I think the issue is that TSMC exists, which takes up a lot of
         | oxygen and opportunity. Whereas in space, there wasn't a high
         | quality opportunity, so SpaceX had a lower hurdle to being the
         | best (even though that still wasn't easy!).
        
           | doron wrote:
           | Indeed, but downplaying the strategic threat to Taiwan as a
           | "short-term" potential impact is not a credible position in
           | the long term.
           | 
           | It is prudent, possibly even critical, to have foundries on
           | US shores, and the US will have to pay for it.
        
         | cdchn wrote:
         | Chip production seems another order of magnitude more expensive
         | than space travel, when you look at tens of billions for a fab,
         | but also several orders of magnitude more productive.
        
         | nemothekid wrote:
         | > _By "SpaceX moment", I mean a startup entering an impossible
         | market,_
         | 
         | I think semiconductors is a difficult space for a SpaceX.
         | SpaceX was relatively cheap - the company itself only raised 2
         | billion dollars, and according to Musk, the cost to develop
         | Falcoln Heavy was "only" $500M. I think the "thesis" behind
         | SpaceX is moreso that the technology to develop rockets had
         | come down massively, but the market had gotten fat and lazy on
         | government contracts. The market only seemed impossible because
         | everyone just assumed so.
         | 
         | On the other hand ASML's EUV machine costs $300M and that's
         | only a small part of what you need build your own Fab and
         | barring some massive research breakthrough that isn't coming
         | down any time soon.
        
         | reaperman wrote:
         | > a market dominated by industry giants from the 60s
         | 
         | The thing is, the SpaceX moment occurred because of a rare
         | opportunity where the industry incumbents were insulated from
         | any competition or need for innovation for ~30 years. Some
         | domestic industries still operate in an environment somewhat
         | like this (e.g. the steel industry), but still face modernized
         | global competition (albeit whose effects are kept at bay via
         | import tariffs reaching as high as 266%).
         | 
         | The semiconductor industry... while there are magnificent
         | barriers to entry and not "enough" competition, they have
         | absolutely not been wholly insulated from innovation or
         | competition. And innovation in fabrication is driven at a very
         | rapid pace! So there aren't huge outsized profits to be found
         | like there was for SpaceX. And even SpaceX needed to invent
         | what was almost an entirely new industry (Starlink) to become
         | truly profitable.
         | 
         | And even trying to pull a "SpaceX" on domestic steel
         | manufacturing would fall flat because you wouldn't capture the
         | global market, and would still be dependent on some
         | (potentially much lower) tariffs to compete against the very
         | modernized factories in China, which are
         | innovative/competitive/efficient, unlike our domestic industry.
         | 
         | SpaceX took advantage of a very rare situation where there
         | truly was no competition or innovation anywhere on the planet
         | for a very long period. I'm not aware of any other industries
         | which are quite as far "behind" today as space launch systems
         | were in 2010. But if anyone else is, please mention those
         | industries here!
        
           | packetlost wrote:
           | US Telecom is not _as_ far behind, but it 's pretty far
           | behind. Unfortunately, I think it largely competes with
           | cellular networks and Starlink these day.
        
           | highfrequency wrote:
           | Nice analysis on competitive dynamics of semiconductor
           | industry vs. space industry in the 2000s.
           | 
           | > I'm not aware of any other industries which are quite as
           | far "behind" today as space launch systems were in 2010. But
           | if anyone else is, please mention those industries here!
           | 
           | Digital payments may be in a similar situation. Visa's 2% fee
           | may seem low but from a scale and competitive standpoint it
           | is fairly absurd - they are making 80% gross margins on $30b
           | of revenue to do what boils down to a few API calls and some
           | fraud repayment. I doubt that they need to do much innovation
           | to keep that moat either (in contrast to say Apple and their
           | 30% cut of App Store revenues - they need to constantly stay
           | ahead of Android and Windows).
           | 
           | Curious to hear your take on what other industries at least
           | come close to the space dynamics in 2010.
        
             | ska wrote:
             | From what i can see as an admitted outsider, payment rails
             | are more complicated than they look, and most of the crypto
             | partisans arguments to "replace" functionality are a mix of
             | 'ignoring that part', or 'we don't want that part anyway' +
             | a few API calls.
             | 
             | Problem is, the world consuming these things mostly seems
             | _to_ want those parts, and _can 't_ ignore those other
             | parts. Which seems to explain relatively low uptake.
        
               | amluto wrote:
               | Those rails involve an amazing amount of complexity that
               | boils down to the entire system being nonsensical.
               | 
               | Payments are pulled instead of pushed; the underlying
               | credit card numbers lack even a semblance of security;
               | there is all kinds of mis-design due to the way that
               | restaurant tips work; it all started when credit card
               | imprints/readers were all assumed to be offline; etc.
        
               | beAbU wrote:
               | What do you mean "it all started..." ?
               | 
               | One of my earliest memories is my mum paying for
               | groceries using her credit card in the 90/00s, where the
               | machine used was completely mechanical/manual. It copied
               | the card number (that was embossed on the plastic) by
               | literally taking a carbon paper rubbing of the card. The
               | system was designed to be offline, because back then
               | there was no "online".
        
               | amluto wrote:
               | That would be one of the credit card imprinters I
               | referenced, which is offline...
               | 
               | I also recall the occasional business _writing down_
               | credit card details, in person, with a pen, on a form
               | they had for the purpose.
        
               | dvdkon wrote:
               | Most Czech banks offer free domestic instant payments,
               | and many small businesses who were previously cash-only
               | now take them as an option. I heard there's also a SEPA
               | equivalent.
               | 
               | If the electronic retail payment industry hadn't already
               | been captured by VISA and MasterCard, I could very well
               | see something like this, a much cheaper and simpler
               | system, being what everybody uses. There's countries
               | (India?) where debit/credit card adoption was slow and
               | now these simpler solutions have significant market
               | share.
        
               | astrange wrote:
               | It takes (at least) two people to want to adopt a payment
               | system. The reason American customers use credit cards is
               | that they like them; they're very safe for customers and
               | they have reward points.
               | 
               | You could pay with cash or debit if you wanted to, but
               | then you can't chargeback the business.
        
               | mnau wrote:
               | Sweeden has a Swish and I am pretty sure many countries
               | have very similar free option.
               | 
               | We just need a non-profit integrator to do it
               | worldwide... Use credit card as a fallback if everything
               | else fails.
        
             | lotsofpulp wrote:
             | >Visa's 2% fee may seem low but from a scale and
             | competitive standpoint it is fairly absurd - they are
             | making 80% gross margins on $30b of revenue to do what
             | boils down to a few API calls and some fraud repayment.
             | 
             | The banks issuing Visa cards do fraud repayment. Visa gets
             | paid for their network, and specifically their network of
             | higher income spenders who want to play the rewards game.
             | Also, note that Visa does not earn 2% of transaction
             | totals. A signification portion of total card processing
             | fees goes to the card issuing banks to pay for rewards and
             | fraud repayment.
        
             | cvadict wrote:
             | > to do what boils down to a few API calls
             | 
             | LOL @ anyone who believes that global financial processing
             | is primarily a technical problem vs. the regulatory /
             | bureacratic dystopia it actually is.
        
         | nick238 wrote:
         | I think rockets are insanely _simple_ compared to silicon. The
         | amount of research and development it takes to build _a light
         | source_ (hot tin plasma[1]) is extraordinary, and fabs are also
         | probably the most complicated manufacturing facilities in the
         | world. Tesla struggled mightily with integrating disparate auto
         | parts manufacturers some years ago.
         | 
         | SpaceX and Tesla benefited from being helmed by a crazy person
         | (in their nascent stages), who pushed to break norms in the
         | conventional thinking, either "rockets can't be reused/we must
         | spend $10B on a test campaign[2] before any part leaves the
         | ground" and "EVs aren't cool". I don't think if Musk could
         | design a rocket engine from scratch is relevant, but the
         | strategic design patterns of 1) reduce requirements, 2) remove
         | unused things, 3) simplify/optimize, 4) accelerate cycle times,
         | 5) automate. Those points aren't revolutionary, just a more
         | expanded "go fast and break things."
         | 
         | The computers that came out of Silicon Valley in the late
         | 70s-into the 80s were a disruption to the old stalwarts like
         | IBM. Though for silicon maybe _I 'm_ just trapped in that pre-
         | SpaceX thinking.
         | 
         | [1]: https://phys.org/news/2020-05-exceptional-euv-hot-tin-
         | plasma...
         | 
         | [2]: https://www.planetary.org/space-policy/cost-of-sls-and-
         | orion
        
           | kazen44 wrote:
           | > The computers that came out of Silicon Valley in the late
           | 70s-into the 80s were a disruption to the old stalwarts like
           | IBM. Though for silicon maybe I'm just trapped in that pre-
           | SpaceX thinking.
           | 
           | another good example of this is how VLSI in particular
           | disrupted the mini-computer/mainframe market and made CPU's
           | cheap enough to put them into smaller and far cheaper
           | machines. This really shook up the old guys who where used to
           | being total system vendors. (IBM, DEC etc). Suddenly, you
           | could get a computer for much cheaper compared to the decade
           | prior, and by the early to mid nineties you had guys like sun
           | eating their lunch completely.
           | 
           | IBM pivoted to being a services company and DEC just
           | imploded.
        
         | FuriouslyAdrift wrote:
         | TSMC has been spending $15 - $50 billion per year for years to
         | stay on top.
         | 
         | Estimates are it would take $200 - $300 billion just to catch
         | up with them and little to no profitability for a decade while
         | burning $10s of billions every year.
         | 
         | I think the federal govt is the only entity that has that kind
         | of money.
        
         | amluto wrote:
         | Maybe one of the e-beam startups can pull it off. Aside from
         | scaling issues, direct electron beam lithography _ought_ to
         | outperform optical lithography by many metrics, not to mention
         | that there would never be costs associated with mask revisions.
         | 
         | Here's one of them: https://multibeamcorp.com/
         | 
         | I remember touring a little research fab, maybe around 2000,
         | that could achieve feature sizes comparable to what TSMC can do
         | today. But they were very, very, very slow.
         | 
         | (Fast-moving electrons are easy to make, easy to aim, and have
         | teeny tiny wavelengths that entirely sidestep most the issues
         | that people have with photons having obnoxiously large
         | wavelengths. But electrons have all manner of downsides that
         | explain why fabs spend many billions of dollars on optical
         | lithography, one of which is that they _repel each other_ ,
         | which makes shining a lot of them at a wafer at once quite
         | problematic.)
        
         | numpad0 wrote:
         | I think lack of focus on US domestic chip capability is semi-
         | intentional and is an eventuality. Semiconductor industry, and
         | many other manufacturing industries too, seem to flourish at
         | very outer edges of the free world.
         | 
         | It could be simple as the free world not wanting manufacturing
         | capability at home. It could be wanting only grain farms and
         | money printers.
        
           | kazen44 wrote:
           | Manufacturing in the west is expensive compared to cheaper
           | developing countries.
           | 
           | Also, manufacturing has a massive impact on the environment,
           | this includes semiconductor manufacturing. It has politically
           | been impopular for a while now.
        
         | insane_dreamer wrote:
         | > By "SpaceX moment", I mean a startup entering an impossible
         | market, where the barrier to entry is billions of dollars of
         | research and manufacturing, a market dominated by industry
         | giants from the 60s, and yet still coming out on top somehow.
         | 
         | This already happened and the startup was TSMC. Unfortunately
         | for the U.S., it's in Taiwan.
        
       | zelias wrote:
       | I like the proposed approach of purchase guarantees here.
       | Directly injecting cash into Intel just creates a moral hazard
       | where they spend the money dealing with organizational inertia
       | than innovating in the space. Plus, the government could even
       | turn a profit reselling its purchased semiconductors to various
       | US companies!
       | 
       | The US ecosystem badly needs a serious Intel competitor --
       | because they just ain't it.
        
         | jjtheblunt wrote:
         | > Plus, the government could even turn a profit reselling its
         | purchased semiconductors to various US companies!
         | 
         | No freaking way. How do you think that's feasible, considering
         | how fast depreciation goes in semiconductors?
        
           | wmf wrote:
           | Pork bellies also go bad but you can make money trading them.
           | You don't even take delivery.
        
             | jjtheblunt wrote:
             | are you suggesting the parent comment should be considering
             | derivatives like agricultural product futures?
        
               | wmf wrote:
               | Yeah. The government could pre-pay for chips to guarantee
               | demand then auction the futures right before the chips
               | are manufactured.
        
         | bryanlarsen wrote:
         | The payments are tied to real milestones like building fabs.
         | Intel cannot spend the money on organizational inertia because
         | that wouldn't get them the money.
        
           | Invictus0 wrote:
           | It doesn't matter how badly they want to sell the chips if
           | they don't have the money to build the fabs in the first
           | place. That's where Intel is at right now. Building fabs is
           | incredibly expensive and they need the money upfront.
        
             | NortySpock wrote:
             | You can get a loan against the value of a purchase contract
             | if you have a firm purchase contract (i.e. from the
             | government) and a convincing plan on how to manufacture to
             | that price point...
        
       | scrlk wrote:
       | > in the late 2010's Intel got stuck trying to move to 10nm,
       | thanks in part to their reluctance to embrace the vastly more
       | expensive EUV lithography process
       | 
       | TBH, it's easy to say this with the benefit of hindsight.
       | Throughout most of the 2010s, EUV lithography was like the "year
       | of the Linux desktop" - i.e., this year will be _the_ year where
       | EUV was suitable for high volume manufacturing. I don 't really
       | blame Intel for deciding to go with self-aligned quadruple
       | patterning for 10 nm, but combining it with cobalt interconnects
       | was probably biting off more than they could chew.
       | 
       | FWIW, Intel was funding EUV R&D since 1997:
       | https://www.intel.com/pressroom/archive/releases/1997/CN0911...
       | 
       | That press release had an interesting prediction:
       | 
       | > Intel projects that the microprocessor of the year 2011 will
       | contain one billion transistors, operating at over 10 gigahertz
       | and delivering 100,000 MIPS (millions of instructions per
       | second).
       | 
       | They weren't that far off in estimating the transistor count and
       | MIPS: the i7-2600k released in January 2011 had 1.16 billion
       | transistors [0] and delivered 117k MIPS [1] @ 3.4 GHz. The clock
       | speed prediction was way off due to the failure of Dennard
       | scaling in the early-mid 00s.
       | 
       | [0] https://www.anandtech.com/show/14043/upgrading-from-an-
       | intel...
       | 
       | [1]
       | https://en.wikipedia.org/wiki/Instructions_per_second#CPU_re...
        
         | hangonhn wrote:
         | In addition, SMIC in China managed to get to 7 nm without the
         | use of EUV. Also early EUV yields were actually quite low.
        
           | schmidtleonard wrote:
           | Did SMIC get 7nm to yield or is it limping but propped up for
           | PR purposes like Intel 7?
        
             | enraged_camel wrote:
             | The latter. China isn't even close to achieving high-yield
             | 7nm.
        
             | hangonhn wrote:
             | It's in volume production. This is what Huawei uses for its
             | Mate 60 phones. They've sold 30 million units. From
             | articles I've read the features on the chip are actually
             | quite precise, which lead people to think the yield is at
             | least decent.
             | 
             | How they will get to 3nm is another question but back when
             | Intel made its decision, 7nm was on the horizon so choosing
             | to not go the EUV route is not as dumb as it may look now.
        
         | api wrote:
         | > Throughout most of the 2010s, EUV lithography was like the
         | "year of the Linux desktop" - i.e., this year will be the year
         | where EUV was suitable for high volume manufacturing.
         | 
         | We need to learn to recognize the difference between something
         | that's never going to happen for either physical or
         | economic/social/structural reasons, and something that is just
         | really difficult and takes a long time.
         | 
         | I always think of this when I think about fusion and the
         | irritating "fusion is 20 years away and always will be" meme.
         | In reality fusion has been edging closer, and closer, and
         | closer for decades. Like EUV lithography it's just incredibly
         | hard and requires a ton of capital and time and some of the
         | smartest people on Earth to make it a reality. The same logic
         | applies to things like a working HIV vaccine, life extension,
         | or human space flight and space settlement.
         | 
         | The reason there's never been a year of the Linux desktop on
         | the other hand has to do with the full picture of what's
         | required to _mass market_ a desktop OS and support that, not
         | just the technical problems, as well as business reasons around
         | what Microsoft does to incentivize vendors to stay in their
         | ecosystem. Linux desktops are just about ready today but no
         | mainstream laptop /desktop PC vendor is going to sell them for
         | a long laundry-list of non-technical or para-technical (legacy
         | software base) reasons.
        
           | SoftTalker wrote:
           | I'd say Linux desktops have been good enough for a long time,
           | but never broke into the mainstream for the reasons you cite.
           | ChromeOS is the closest thing I guess, but outside of schools
           | and a few other institutional uses, Chromebooks are not very
           | popular.
        
             | davidw wrote:
             | They're pretty incredible machines for the price. I bought
             | one a year and a half ago in an emergency, as the
             | networking on my laptop died over the course of a few days
             | and I needed _something_ for browsing and email. I got the
             | Linux dev environment set up on the Chromebook and I
             | actually kept it instead of getting a new expensive laptop.
        
               | ghaff wrote:
               | They are. The problem is that they _are_ for the
               | educational market. Especially with Google 's exit from
               | hardware, they're basically mostly cheap devices for
               | kids. And, if you do build a nice one, you could probably
               | get a lower-end MacBook Air for about the same price
               | which would be almost as low-maintenance to use if you
               | wanted it to be.
        
               | ajross wrote:
               | The cheapest Air is $999 for a fast but pretty limited 8G
               | device. That budget gets you a 16G Meteor Lake Chromebook
               | which runs Debian cleanly in a VM. It's true that Apple
               | is doing a better job than it used to in serving the
               | budget market, but Macs remain pretty exclusive.
               | Similarly a low end Windows laptop with WSL is a better
               | budget choice, though IMHO very inferior to the
               | Chromebook in Linux integration.
        
               | ghaff wrote:
               | I'm not sure we're really disagreeing.
               | 
               | The thing is that I don't really _want_ a budget
               | Chromebook (which certainly exist).
               | 
               | I want something for travel mostly. Ended up getting a
               | new iPad Air recently which isn't all that light but
               | probably fits my needs best as it now has a pretty
               | functional keyboard and can easily be used without the
               | keyboard as an entertainment/consumption device.
        
               | ajross wrote:
               | Context upthread was for a development box, though. Airs
               | are pretty limited for that, but the bigger Chromebooks
               | do great.
        
             | ho_schi wrote:
             | Linux is not preinstalled. There are some ThinkPads* and
             | Dells with Ubuntu or Fedora but you need to _know_ that.
             | 
             | And people how know will and must reinstall anyway Arch,
             | Gentoo, Suse, Debian, Fedora or Ubuntu.
             | 
             | The Steamdeck is an excellent proof how a full featured
             | Linux (SteamOS is based upon Arch) is shipped well. Not a
             | unmaintained or googlyified closed-source derivate of Linux
             | (Android and ChromeOS).
             | 
             | * I ordered an X13 Gen1 AMD with Linux for fun. Worked
             | well, installation was clean. No 120$ for Microsoft and its
             | stock owners. You shall not feed the bad guys. Especially
             | when you will never use Windows.
        
           | bee_rider wrote:
           | The main reason there will never be a "year of Linux on the
           | desktop" is that desktops became irrelevant before Microsoft
           | became... whatever it is now.
        
             | Maken wrote:
             | Another ad company?
        
               | bee_rider wrote:
               | Yeah.
               | 
               | But like, also an ad company with no QA? Like Google is
               | somewhat evil I think, but they are intensely competent
               | in a way that Microsoft is not.
        
               | jyrkesh wrote:
               | Microsoft is now largely a public cloud company, also
               | supporting a very healthy suite of B2B productivity
               | tools.
               | 
               | Which makes the B2C ad stuff they shove into Windows all
               | the more infuriating: it's a drop in the bucket relative
               | to their other product verticals.
        
               | kbolino wrote:
               | I think it's because Windows _as a line of business_ is
               | still expected to turn some kind of a profit, even though
               | operating systems are not profit centers anymore and
               | haven 't been for some time. Whereas, Apple and Google
               | view their operating systems as just necessary
               | infrastructure to support profitable ventures.
        
             | api wrote:
             | Desktops are irrelevant? Other than a few things does any
             | actual work happen on mobile devices?
             | 
             | I think it would be correct to say that present-day
             | desktops are mature and stable and aren't rapidly changing
             | because they fill a mature niche. Mobile does seem to have
             | decimated the casual computing and much of the non-work-
             | related computing niche, at least for non-technical people.
             | 
             | I wonder if there's an argument to be made that desktops
             | should become _more_ technical and power user oriented
             | since that is now their niche.
        
               | bee_rider wrote:
               | I think "year of Linux in the desktop" has always been
               | understood to be in the context of consumer devices.
               | Otherwise, I mean, it's always been year of Unix on the
               | workstation/server, right? With room to quibble in the
               | prosumer space.
        
               | maratc wrote:
               | > Other than a few things does any actual work happen on
               | mobile devices?
               | 
               | Outside of browsers, not much work happens on desktops
               | either...
        
               | robotnikman wrote:
               | The huge amount of people still in office cubicles typing
               | on spreadsheets all day would disagree
        
           | timschmidt wrote:
           | Valve sells the SteamDeck and is preparing SteamOS for use on
           | similar handhelds available now from most major vendors.
           | 
           | They may not be traditional laptops or desktops, but they're
           | PCs, and they're being sold with compatibility with a large
           | installed base of Windows games in mind. Moreover, handheld
           | gaming PC users seem to perceive SteamOS as being superior to
           | Windows in this device category.
        
           | x0x0 wrote:
           | > a working HIV vaccine
           | 
           | It's worth pointing out we kind of have this now. Or, to your
           | point, are definitely inching (a lot) closer. The lenacapavir
           | trial results are great. From the press release
           | https://www.gilead.com/news-and-press/press-room/press-
           | relea...
           | 
           | > _Gilead's Twice-Yearly Lenacapavir Demonstrated 100%
           | Efficacy and Superiority to Daily Truvada(r) for HIV
           | Prevention_
           | 
           | > _- First Phase 3 HIV Prevention Trial Ever to Show Zero
           | Infections_
        
           | zhobbs wrote:
           | It's a good point, but one thing to consider is that ultra
           | long hard tech might be structurally challenging as well. If
           | fusion requires 100 years of capital and R&D it won't be
           | viable ever due to economic/societal/structural reasons.
        
         | ghaff wrote:
         | Intel was also being at least a bit disingenuous in public at
         | the time although they probably also thought they could make
         | those frequencies work. But a very senior Intel exec told me,
         | at the time IBM was showering them with a lot of public snark,
         | that _of course_ they new about the upcoming issues but
         | Microsoft was so worried about multicore scalability that Intel
         | had to play along.
        
         | wmf wrote:
         | Nobody used EUV for 10 nm though. Even 7 nm doesn't need EUV.
         | This kind of error calls the rest into question.
        
         | encom wrote:
         | >year of the Linux desktop
         | 
         | A tangent, and I realise this phrase is a meme, but it has
         | always bothered me. Nobody has ever defined _what_ year of the
         | Linux desktop _actually_ means, so it 's a phrase without any
         | real meaning.
        
           | fluoridation wrote:
           | Roughly speaking, that running Linux as a desktop OS would be
           | easy enough that even non-technical users would be able to do
           | it with difficulties comparable to, say, Windows XP.
        
             | flo123456 wrote:
             | Whichever for me was in 2010 when I set up Ubuntu for my
             | grandma and put a Firefox shortcut on her desktop and she
             | never had any issues with her computer again. Very simple
             | use-case but it was a lot better served than by Windows
             | Vista at the time. These days it's even better served by an
             | iPad though.
        
               | fluoridation wrote:
               | IME, that works as long as the user does nothing but
               | browse the web and nothing in the environment or the
               | computer changes. Things get tricky the moment any of
               | those assumptions are invalidated. And that's because the
               | user is not really operating the computer, but just using
               | it to access the web. That it's a "desktop" is only an
               | implementation detail.
        
             | mjevans wrote:
             | The goal posts always seem to move.
             | 
             | Windows is an ugly pain in the butt to create install media
             | for (when you're not on the native OS), and it's just as
             | bad to Install on random hardware. Maybe more so since it's
             | less likely to ship network drivers for random wifi gear
             | and lan connections. Even Debian has non-free blobs for
             | drivers with the (at least 'Live' versions) these days,
             | finally.
             | 
             | Repair shops are the next big thing I hear. The goal posts
             | always move if it isn't exactly what someone already knows.
        
               | fluoridation wrote:
               | >Windows is an ugly pain in the butt to create install
               | media for (when you're not on the native OS)
               | 
               | That sounds like a Linux problem, not a Windows problem.
               | Windows can create Linux boot USBs just fine.
               | 
               | >Maybe more so since it's less likely to ship network
               | drivers for random wifi gear and lan connections.
               | 
               | Eh. IME the opposite is true. I've never seen Windows not
               | recognize a network card, but I've on occasion had to
               | manually install drivers for Debian for a plug-in NIC,
               | but that years ago, now. On the other hand, _very_
               | occasionally Windows needs to be spoon-fed drivers for a
               | storage controller during installation.
        
         | mrsilencedogood wrote:
         | So did the year of the EUV lithography happen? What year was
         | it?
         | 
         | (Genuinely asking, I don't know anything about chips - I'm the
         | kind of programmer who is profoundly comforted by pretending
         | like my CPU is like a really fast version of the thing I did in
         | CompE 201, as opposed to reality which i gather is a bit more
         | like a demonically possessed stone that glues together a bunch
         | of barely understood physics that kind of "even out" at macro
         | levels but seem pretty f'd up at quantum levels).
        
           | scrlk wrote:
           | 2019, when TSMC N7+ entered high volume manufacturing.
        
             | SSLy wrote:
             | OK, and in Intel's fabs? They're still not on EUV, right?
        
               | scrlk wrote:
               | Intel 4 was their first EUV process, which entered HVM in
               | September 2023.
        
           | baoluofu wrote:
           | Your description of reality made me chuckle. I remember
           | during my degree the professor teaching us about how simple
           | CPUs are made, but saying that the people who engineer the
           | current hardware are like dark magicians. It can only have
           | gotten more complicated since then.
        
       | AnotherGoodName wrote:
       | Intel is trapped. Its debt repayments alone are massive. The poor
       | performance in stock has encouraged 20years of wage stagnation to
       | the point where you can literally earn over 50% more at amd or
       | nvidia or even an startup for equivalent roles so they aren't
       | hiring the best. Their pay in the Bay Area is double tsmc in
       | taiwan for equivalent roles in raw dollar terms but the ppp
       | differences means your better off working for tsmc in Taiwan than
       | intel in the Bay Area. That's not a joke. Intel are literally
       | incapable of attracting talent from Taiwan right now.
       | 
       | They don't have the talent they need and the debt trap and poor
       | performance means a lot of push back to the needed doubling of
       | wages to attract that talent. It's a very hard sell for any exec
       | trying to correct this problem. They sidelined lip bu tan who was
       | one of the advocates for even more layoffs and wage freezes but
       | he's one of many backwards thinkers they need to remove. It's
       | going to be difficult to fix their board.
       | 
       | Without talent intel has no hope of winning and they can't get
       | that talent due to poor stock performance for the past 20years
       | leading to executives and shareholders wishing to implement the
       | opposite of what they need right now. In fact they have ongoing
       | layoffs right now. A true downward spiral and the only real hope
       | is for a newcomer to step up.
        
         | nightski wrote:
         | I'm not saying you are wrong but personally I'd view the stock
         | as an attractive perk right now since it is so low.
         | 
         | Whereas if I were joining a company such as Nvidia I'd honestly
         | be kind of worried.
         | 
         | Historical performance isn't really a great indicator here.
        
           | skeeter2020 wrote:
           | sotck can be low because it's undervalued by the entire
           | market and going to jump once they catch up to the future
           | value potential, or it can be low because it accurately
           | reflects the decline and limited value. If you only see the
           | "attractive perk" from being so low you're the one using
           | historical performance as the indicator, thinking Intel's
           | only a few quarters or years away from former glory days.
        
             | sodality2 wrote:
             | Efficient market hypothesis dictates the price accurately
             | reflects valuations. So if a stock price is down
             | relatively, it's because the wealth of information
             | available on it indicates its decline.
        
               | wing-_-nuts wrote:
               | I too, used to be a dyed in the wool boglehead that
               | believed in efficient markets. The missing small cap
               | value / international premium over the past _twenty
               | years_ has me convinced otherwise today.
        
               | sodality2 wrote:
               | You raise a valid objection:                   To put the
               | US equity outperformance of the last 15 years in
               | perspective, US equities historically have outperformed
               | non-US equities by 2.3 percentage points annualized since
               | 1926 and by 2.7 percentage points in the post-WWII
               | period. In our strategic asset allocation models for
               | clients, we assume one percentage point of outperformance
               | annualized [0]
               | 
               | Not sure this really breaks the idea of small cap vs
               | large cap (since there's been swings and reversals in
               | that in just the past 15 years IIRC), just the
               | international equity differences.
               | 
               | Also, just going to note that 20 years is really not that
               | long and it's reasonable for valuation swings to take
               | that long to reverse.
               | 
               | [0]:
               | https://privatewealth.goldmansachs.com/outlook/2024-isg-
               | outl...
        
           | AnotherGoodName wrote:
           | You can trade your stock for intel stock when working at any
           | company. Stock grants really should be swapped for income and
           | reinvested how you see best. So ultimately the total take
           | home income is what should matter for any new hire. Take the
           | higher paying and job and buy intel stock if you believe
           | it'll rise.
        
             | tedivm wrote:
             | Most stock vests over time though. I can't trade it
             | immediately, and the value may drop between when I get the
             | grant and when I can actually sell the shares.
        
               | andreasmetsala wrote:
               | He's saying ignore the potentially worthless options and
               | invest that extra 50% salary you earn at elsewhere in
               | Intel stock instead of working there.
        
           | packetlost wrote:
           | I mean, I have a lot more confidence that nvidia will
           | continue to deliver products to a market that wants to pay
           | for them over Intel at this point in time, even if the stock
           | is likely to come crashing back down to earth soon. As an
           | employee, I wouldn't really factor in stock performance
           | necessarily, but the overall image and outwardly visible
           | struggles Intel is going through tells me the internal
           | struggles are probably far worse than the public or
           | shareholders know.
        
           | bryanlarsen wrote:
           | By what metric do you consider INTC to be low? I took a look
           | because I'd be happy picking up some cheap INTC, but it still
           | looks expensive to me.
        
             | phonon wrote:
             | It's trading significantly below book? $120 B vs $82 B.
             | 
             | Downside is that most of their assets are their fabs...
        
           | ohcmon wrote:
           | You would be surprised, but nvidia's employee stock plans
           | allow to select the purchase price within the last 2 years
           | https://www.nvidia.com/en-us/benefits/money/espp/
        
             | happyopossum wrote:
             | ESPP is completely different from stock-based compensation.
        
             | _chris_ wrote:
             | > _allow to select the purchase price within the last 2
             | years_
             | 
             | I don't think that's true. My reading of that is "you lock
             | in the price on your start date and can keep that for the
             | next 2 years going forward". That doesn't help anybody
             | joining at >$1k / share. :D (and that's only ESPP, not
             | standard stock compensation).
        
           | bluecalm wrote:
           | Intel stock is as high as it was 15 years ago when they had
           | total market domination. Now they are at the brink of
           | collapse. The market is way bigger today but still, I would
           | take a dominant player over a failing one every day.
           | 
           | Another way to look at it: Intel market cap is 83B, AMD's
           | market cap is 228B. Do you think Intel is expected to make
           | 1/3 of the money AMD is going to make in coming decades? I
           | see no reason to be as optimistic.
        
             | eric-hu wrote:
             | > Another way to look at it: Intel market cap is 83B, AMD's
             | market cap is 228B. Do you think Intel is expected to make
             | 1/3 of the money AMD is going to make in coming decades? I
             | see no reason to be as optimistic.
             | 
             | Nit: market cap is not earnings. That's stock price *
             | shares outstanding.
             | 
             | This year's earnings looks like this:
             | 
             | Intel, 3 months ended: Jun 29, 2024
             | 
             | > Net income (loss) (1,654)
             | 
             | https://www.intc.com/news-events/press-
             | releases/detail/1704/...
             | 
             | AMD, 3 months ended: June 29, 2024
             | 
             | > Net income (loss) $ 265
             | 
             | https://ir.amd.com/news-events/press-
             | releases/detail/1209/am...
             | 
             | So Intel lost 1654M and AMD earned 265M. This only makes
             | your point stronger.
        
         | dv_dt wrote:
         | I think this contains mostly correct analysis with respect to
         | hiring experienced talent, but under emphasizes how unique each
         | process is per company. Experience is a positive, but less
         | positive because of it.
         | 
         | There is a lot of potential that could be made from newer hires
         | combined with focused in house training/experimentation - which
         | is what all these businesses had to do in their initial
         | expansion - with not enough people of experience at scale
         | available, and they probably had to do a running training ramp
         | up multiple times over multiple generations of growth. This is
         | in general is an underutilized strategy - esp for mature
         | companies that need to essentially build a new generation of
         | tech in-house.
        
         | closeparen wrote:
         | >Their pay in the Bay Area is double tsmc in taiwan for
         | equivalent roles in raw dollar terms but the ppp differences
         | means your better off working for tsmc in Taiwan than intel in
         | the Bay Area. That's not a joke. Intel are literally incapable
         | of attracting talent from Taiwan right now.
         | 
         | There's some whiplash in hearing constantly how the US is a
         | corporate-dominated oligarchy, and then also seeing trillion-
         | dollar industries at the forefront of the global economy
         | constantly getting their shit rocked by a few dozen NIMBY
         | retirees at city council meetings.
        
           | amluto wrote:
           | Some of the issues are way downstream of those NIMBYs:
           | 
           | Non-housing costs are quite low in Taiwan. Food and
           | childcare, in particular, are so much cheaper than California
           | that it's hard to believe.
           | 
           | But the NIMBYs aren't totally in the clear. Rental housing
           | with 3+ bedrooms (for families) is severely lacking in much
           | of the US. Maybe fire codes are to blame. Taiwan is _full_ of
           | very nice new high-rise development that contains units with
           | lots of bedrooms. Wandering around those developments and the
           | new 3-story developments in California, the ones in Taiwan
           | are much, much, much nicer, even from the outside. The NIMBYs
           | should take note.
        
             | closeparen wrote:
             | While there are a number of technical issues with respect
             | to the limited trickle of multifamily permits that are
             | given, the fundamental dynamic is that engaged voters don't
             | want to see significantly more people living in the region,
             | and therefore it doesn't happen.
        
               | cogman10 wrote:
               | Yeah, it has a lot to do with selfishness. More housing
               | means more people means you have a lower property value
               | for you home in the area. Further, it means your vote
               | becomes less powerful as the poors that live in the high
               | rise have the same voting power as you do in your single
               | family home.
        
               | amluto wrote:
               | I think it has a lot to do with people believing what you
               | just said. Which is, of course, utter nonsense! If a
               | neighborhood suddenly gets rezoned for 20-story mixed-use
               | development, an existing _house_ will be devalued, but an
               | existing _lot_ will likely gain more then enough value to
               | compensate.
        
               | cogman10 wrote:
               | > Which is, of course, utter nonsense!
               | 
               | That doesn't change the loss of voting power. Further,
               | value to who? I agree a 20 story high-rise has more value
               | than a single-family home, but how does that help the
               | single-family homeowner or the homeowners that live
               | around the lot that gets rezoned?
               | 
               | That's the problem. The existing homes and their owners
               | seem mostly downsides to rezoning even though the city as
               | a whole would benefit greatly from them.
        
               | _DeadFred_ wrote:
               | Is it selfish to have national parks when there are
               | people that are homeless and the government could give
               | them literally free land?
               | 
               | Long ago the people that lived in the area realized that
               | they liked where they lived and how it was, and voted to
               | put in place rules to keep it that way. It sucks now, I
               | and all my friends the grew up there were forced to move
               | somewhere affordable, but it's not pure selfishness. They
               | didn't take something away from someone else, no one else
               | ever had it. And to expand it does inherently change the
               | nature of what 'it' is and opens a genie that can NEVER
               | be put back.
        
               | astrange wrote:
               | > Long ago the people that lived in the area realized
               | that they liked where they lived and how it was
               | 
               | Ignoring that there were probably Indians there - that
               | wasn't "long ago", residential zoning was mostly
               | introduced in the 30s-60s. America hasn't had zoning for
               | most of its life!
               | 
               | Most other countries have never had it and still don't.
               | 
               | (Except every other Anglo country has an even /worse/
               | planning system than American residential zoning.)
        
               | _DeadFred_ wrote:
               | Am I wrong to use when this issue started as the
               | discussion starting point? Or are you agreeing that it is
               | unfair to force a living situation change on a native
               | population because other people want to move in or force
               | their say about things?
               | 
               | Zoning was introduced in the USA in 1904. The USA was
               | 'urbanized' in 1920 the first time more Americans lived
               | in cities than the rural countryside. Our zoning laws fit
               | with the time period when we would develop things like...
               | zoning laws.
               | 
               | When my family moved to the Bay Area huge parts of it was
               | fruit trees (with another large part being future
               | superfund toxic waste dumps).
               | 
               | If you were to drive (because they aren't designed for
               | walking) along the 'Walmart strip' of any town in the USA
               | I can't see how you can argue 'the USA has too strong of
               | city planning'. Our growth is the stuff of ugly, out of
               | control, unwalkable, car requiring nightmares.
        
               | astrange wrote:
               | > Am I wrong to use when this issue started as the
               | discussion starting point?
               | 
               | You're wrong about when it started. It's a lot more
               | recent than that. We didn't build this way in 1904; we
               | couldn't have afforded to live like this because we
               | didn't have cars. A lot of places in the US were actually
               | bulldozed since then to replace them with streets and
               | parking.
               | 
               | American zoning specifically was introduced in California
               | for the sole reason of keeping Chinese immigrants out of
               | white neighborhoods - the idea was that if you banned
               | running a business out of your home, they wouldn't be
               | able to afford the neighborhood. (See "The Color of
               | Law"... or you can read the city council minutes because,
               | like, that's why they said they did it.)
               | 
               | But it's been kept since then mainly because of the
               | assumption that everyone will own a car; cars cause
               | traffic, so you can't attract them or strangers will make
               | noise and park in front of your house.
               | 
               | Funny enough, another reason it's been kept in California
               | is that 70s environmentalists read "Urban Growth Engines"
               | and "The Population Bomb" and decided it was good because
               | more expensive housing would stop people from having
               | children. This is probably the inspiration for that
               | Thanos guy.
               | 
               | > If you were to drive (because they aren't designed for
               | walking) along the 'Walmart strip' of any town in the USA
               | I can't see how you can argue 'the USA has too strong of
               | city planning'.
               | 
               | Those are entirely caused by city planning. For one
               | thing, no developer would want to build this way because
               | it's not profitable - all that concrete for surface
               | parking spaces is super expensive and nobody is using it.
               | Parking minimums, stroads, federal highway funding,
               | height limits and NIMBYs all come together to create
               | sprawl. (See "Strong Towns".)
               | 
               | Oh, and fear that denser housing would lead to everyone
               | dying in a nuclear war, that too.
        
             | lotsofpulp wrote:
             | Part of the equation must be the simple fact that the US is
             | big and has the option to give many people the 0.1+ acre
             | detached single family home with a yard and 2+ car
             | driveway/garage lifestyle (and schools with more exclusive
             | student populations).
             | 
             | In smaller places, that simply isn't an option, so there
             | exists greater demand for family living in high rises.
        
               | ghaff wrote:
               | Yeah, very few people who want and can afford 3-bedroom
               | homes want to be renting apartments. I assume that even
               | in New York City, the number of 3-bedroom condos is
               | pretty minimal as a percentage because most people who
               | want that kind of space just move to West Chester or
               | Connecticut.
        
               | structural wrote:
               | This is not universally true, and it's pretty common to
               | hear people who moved out to the suburbs hate it, but
               | they needed the third or even second bedroom! Slightly
               | larger condos simply didn't exist on the market, or were
               | priced at astronomic rates (double the $/sqft compared to
               | a 1bd unit).
               | 
               | Looked at a dozen midrise buildings this year across
               | DC/Phila/NYC markets, some new/recent construction, some
               | office conversions. Most buildings had zero 3bd units
               | except for maybe a single penthouse, a 2bd unit every
               | other floor, and the entire rest of the building evenly
               | divided between studios and 1bd units in the 400-600sqft
               | range. The competition for the 2bd units was unreal, in
               | several cases people were offering the entire year's
               | lease upfront, in cash, to secure an apartment.
               | 
               | It really is that competitive and the demand is there,
               | the supply is not.
        
               | sgu999 wrote:
               | Part of the problem is what is available. If you're a
               | Japanese or a Taiwanese, that detached single family home
               | with a massive garden around it is simply not an option,
               | so you don't feel worst off than anyone else by living in
               | a small house or in a high rise.
               | 
               | Other advantage is that keeping cities very dense and
               | preventing urban sprawl means everyone has access to
               | nature quickly, through public transports.
        
               | astrange wrote:
               | Oh, those kind of houses are definitely available in
               | Japan. Houses in Japan are worth negative money; if you
               | want to sell one the buyer will want you to knock it down
               | first.
               | 
               | The reason they're so cheap is that nobody wants to live
               | in those areas because cities are better and have better
               | jobs.
        
             | colechristensen wrote:
             | >Rental housing with 3+ bedrooms (for families) is severely
             | lacking in much of the US. Maybe fire codes are to blame.
             | Taiwan is full of very nice new high-rise development that
             | contains units with lots of bedrooms. Wandering around
             | those developments and the new 3-story developments in
             | California, the ones in Taiwan are much, much, much nicer,
             | even from the outside. The NIMBYs should take note.
             | 
             | And it's because of zoning. Cities allow density
             | construction but then it's almost exclusively 0 and 1
             | bedroom apartments because you can charge more per sq ft.
             | Zoning laws should _force_ apartment construction to
             | include multiple bedroom units but that would lower the
             | cost of 1br units. So NIMBYs don 't want density
             | construction, and the people who build density don't want
             | big units.
             | 
             | So cities are unlivable if you're not young and single or
             | happy living in relative squalor. So people either don't
             | have children or have to move to have children and you get
             | cities that push out a big chunk of the demographic and
             | then force people to commute.
        
               | foobarian wrote:
               | How could we get a council of a half-dozen visionaries to
               | own a city-sized chunk of land and design a utopia,
               | communist party-style but done right? I really think this
               | is not possible without it being a private parcel where
               | there aren't thousands of individual property owners in
               | the loop for decision making.
        
               | colechristensen wrote:
               | https://en.wikipedia.org/wiki/List_of_American_utopian_co
               | mmu...
               | 
               | People try this thing on a fairly regular basis.
               | 
               | You're thinking "wouldn't it be great if there was a
               | community led by an absolute authority which agrees with
               | me" and, uh, that kind of thing doesn't scale, last, or
               | continue agreeing with you for a particularly long amount
               | of time.
               | 
               | >I really think this is not possible without it being a
               | private parcel where there aren't thousands of individual
               | property owners in the loop for decision making.
               | 
               | This is just saying democracy is bad. Ok, but go find me
               | an example of something else that has actually worked.
               | 
               | It's troubling how people think dictatorship is the
               | solution to their problems these days. It's not even one
               | particular viewpoint that falls into this, people of all
               | positions are increasingly advocating for authoritarian
               | solutions.
        
               | foobarian wrote:
               | > This is just saying democracy is bad
               | 
               | It's more subtle than that, because it depends on the
               | scope. Democracy is already not applied in many contexts
               | today, such as most private corporations. In fact I think
               | large companies have many analogous features to communist
               | governments what with the central control and absolute
               | authority.
               | 
               | There is certainly no suggestion that a whole state or
               | country should be switched over to an authoritarian
               | regime; of course we all know the classic "we tried this
               | already and it didn't work" line.
               | 
               | There are a lot of cult-ish or vaguely religion-based
               | communities out there. But that's not what I have in
               | mind.
               | 
               | You tend to see a lot of lament in here on HN or other
               | similar forums about things like car-centric suburban
               | hellscapes, poor walkability, bike paths, what have you.
               | Meanwhile in urban settings where these things are better
               | solved there is the problem that property values are sky
               | high, and create an elite environment that turn away
               | support roles and cause a new set of problems.
               | 
               | I would love to see some tech billionaire drive an
               | innovative design over a metro-sized zone. Maybe don't
               | have roads and cars except for deliveries, use roads for
               | cycles and pedestrians? Have a subway built before
               | anything else? High-rise mixed-use buildings with
               | important services like free child-care and urgent care?
               | Have golf-cart-like EVs easily available for short-term
               | rent. Free stupid-fast WiFi/Internet etc.
               | 
               | Kind of like a college campus but scaled up? Maybe the
               | crazy sheiks in Dubai will manage it.
        
               | colechristensen wrote:
               | Again, this happens regularly, they don't actually work.
               | 
               | You're advocating for local government to be a
               | dictatorship. Private enterprise is not the same as a
               | government with power over people and land.
               | 
               | https://en.wikipedia.org/wiki/Telosa
               | 
               | >Telosa is a proposed utopian planned US city conceived
               | by American billionaire Marc Lore and announced in
               | September 2021.
               | 
               | https://techcrunch.com/2024/08/23/marc-andreessens-
               | family-pl...
               | 
               | >California Forever is a proposed master-planned
               | community, to be carved from over 60,000 acres of land
               | that several members of Silicon Valley's elite have
               | quietly been buying in Solano County since 2017.
               | 
               | Here's some more: https://www.scmp.com/magazines/style/ce
               | lebrity/article/32166...
               | 
               | >There are a lot of cult-ish or vaguely religion-based
               | communities out there. But that's not what I have in
               | mind.
               | 
               | Honestly, people and their zoning/walkable/anti-
               | car/density/environmental ideals and desire for a little
               | dictatorship to create it is pretty indistinguishable
               | from all the other cult community efforts. The hippies
               | wanted free love and drugs or whatever, the luddites
               | wanted no technology, everybody wanted their set of
               | things. Nobody thinks their cult is a cult, they think
               | they have great ideas, only what those _other_ people are
               | doing is a cult.
               | 
               | Seriously it's troubling how folks think billionaires and
               | dictatorships are going to save them and can't even
               | conceive of a community built on a strong foundation of
               | well executed differing opinions compromising to achieve
               | the best outcome.
               | 
               | Folks just want their opinions and only their opinions
               | made real by force and absolute power. It's insane that
               | people don't recognize how many people have tried before
               | and the awful things that happen when it fails.
        
               | foobarian wrote:
               | For me it's a pleasant thing to ponder, especially when
               | faced with the above mentioned existing problems.
               | 
               | > It's insane that people don't recognize how many people
               | have tried before and the awful things that happen when
               | it fails.
               | 
               | I think it's just human nature, perhaps even more so in
               | an engineering community. Look at how much of scientific
               | progress follows that pattern, and even worse with the
               | participants fully recognizing the immense amounts of
               | preceding failures.
        
               | colechristensen wrote:
               | Advocating for dictatorships isn't a fun little
               | intellectual exercise.
        
               | spencerflem wrote:
               | I think that's a response to the sort of obstructionate
               | governance republicans have been doing. 27 laws total
               | were passed by the senate in 2023 half of which were
               | trivial things like commemorative coins.
        
               | colechristensen wrote:
               | The party in power complains about the inactivity of the
               | Congress because minority party obstruction.
               | 
               | The majority party has the full opportunity to get rid of
               | the fillibuster, and yet does not. (pick a year to
               | determine which party is assigned to which role)
               | 
               | The lack of activity is just as much the Democrats'
               | fault, they have had plenty of opportunity to try to
               | change procedure but they have not.
        
               | prewett wrote:
               | > How could we ... design a utopia, communist party-style
               | but done right?
               | 
               | We can't. Certainly not until people stop being self-
               | oriented, and stop being willing to sacrifice others for
               | their own benefit. Recorded history says this is not
               | going to happen. Even the one (as far as I understand)
               | religion concerned with transforming human nature to love
               | others sacrificially, Christianity, says this requires
               | divine help. (There is even a book, "Critical Journey"
               | that identifies the stages of spiritual life, with the
               | life of sacrificial love as the sixth and last. Given the
               | difficulty and slowness that even people who are
               | committed to the journey find, getting to the life of
               | sacrificial live probably requires multiple decades. So
               | even within Christianity this quality is rare.)
               | 
               | Also, since Communism builds on Marxist ideas, which are
               | founded on the idea of power, a Communist utopia is
               | impossible, since the asserting of of power is the
               | opposite of loving others sacrificially. And, indeed,
               | 100% of the Communist states resulted in totalitarian
               | dictatorships.
        
               | kagakuninja wrote:
               | The billionaires are trying that in California, and us
               | peasants are quite suspicious of the deal...
               | 
               | https://en.wikipedia.org/wiki/California_Forever
        
               | kmeisthax wrote:
               | The first step is don't do this, central planning is a
               | canonical bad idea. Case in point: NIMBYism works
               | _because_ cities are _already_ masterplanned,
               | "communist-party-style". American suburbia _is_ commie
               | blocks. So all you have to do when someone wants to
               | change the plan is to have two or three people shout
               | "no" at the city council and for nobody else to show up.
               | 
               | If you actually want higher-density, what you actually
               | want is national or state laws that restrict what zoning
               | can restrict. Japan is a good model for this: they have a
               | nationalized zoning plan. Individual city councils can
               | only pick specific zones from a list of varying densities
               | of mixed commercial/residential zones and industrial
               | zones.
               | 
               | A lot of the harms of suburban life are _specific_ to the
               | segregation of commercial and residential: moving people
               | away from the places they want to go to means they need a
               | car, and the infrastructure to use it with, which takes
               | up space, which pushes everything else away, which
               | creates more demand for cars and car infrastructure, and
               | so on. Conversely, we could imagine, say, taking a few
               | lots in an otherwise single-family development and
               | turning them into convenience stores or something, which
               | would be something people could just walk to.
               | 
               | Once you have the legal capacity to build you can then
               | start talking about having government money go into
               | buying and developing upzoned property. Private ownership
               | and developers will follow. The goal is not to bring
               | about some specific master plan but to just generally
               | increase access to land and housing. You can run it as a
               | co-op if you want but do not, for the love of god,
               | micromanage people into wishing they had their $500k
               | mortgaged single-family homes that they """owned""" back.
        
               | Wytwwww wrote:
               | But isn't housing extremely unaffordable in Taipei (and
               | presumably rest of Taiwan)? Price per m2 is comparable to
               | San Francisco or San Jose but median earnings are several
               | times lower.
        
               | amluto wrote:
               | Not just zoning. Those high rises have units with lots of
               | bedrooms around a central elevator core, and you can't
               | build those in the US.
        
             | geodel wrote:
             | All true. The question still remains how many US folks can
             | /want to go live in Taiwan vs How many Taiwanese can / want
             | to live in US suburban dystopia. And I say this as
             | immigrant to US increasingly disenchanted by suburbia.
             | 
             | From what I read housing price to income ratio has
             | increased ~2.5 times from 6.5 to 15.8 in last two decades
             | in Taiwan. And it seems to be worse in new developments in
             | city like Taipei.
             | 
             | At a top echelon of Taiwan society or as a tourist it must
             | be nice live, roam around in pleasant urban environments
             | compare to US suburbia but I am not sure average Taiwanese
             | are finding life great with stagnating wages and
             | unaffordable housing.
        
               | jay_kyburz wrote:
               | As a non US citizen, I think there are a lot of high
               | level cultural issues that would prevent me considering a
               | job in the US, well before I pulled out a calculator and
               | starting comparing salary to cost of living.
               | 
               | I won't enumerate them because it would be sure to offend
               | somebody (everybody?).
        
               | nick3443 wrote:
               | You yada yada'd over the best part!
        
               | geodel wrote:
               | That would make sense. There are really lot of reasons to
               | not take job offer in US. And even after taking offer
               | many may find job sucks in ways they have not initially
               | thought of.
               | 
               | The only thing that's unlikely to happen is all good
               | things one like to become available at a place one likes
               | to live.
        
             | kilotaras wrote:
             | > Non-housing costs are quite low in Taiwan. Food and
             | childcare, in particular, are so much cheaper than
             | California that it's hard to believe.
             | 
             | Those are downstream of housing restrictions to a large
             | extent. From "Housing theory of everything" [0]:
             | 
             | Consider a cleaner living in Alabama. In 1960 they could
             | move to NYC and earn wages 84% higher, and still end up
             | with 70% higher income after rent. In 2010, they could move
             | to New York City and become 28% more productive, and earn a
             | wage 28% higher - and reduce the surplus of workers back
             | home, letting them demand higher pay. But since housing
             | costs are so much higher, the net earnings and living
             | standards of someone like this would fall if they moved
             | today, and wouldn't be worth it. The same would be true for
             | plumbers, receptionists and other professions that allow
             | other people to specialise at what they're best at and
             | minimise the time they spend on things like DIY and
             | answering the phone. By contrast, top lawyers get wage
             | boosts that are still sufficiently higher to justify a move
             | in both 1960 and 2010, even after the higher rents they'll
             | have to pay.
             | 
             | [0] https://worksinprogress.co/issue/the-housing-theory-of-
             | every...
        
               | efitz wrote:
               | Anyone looking to start a new manufacturing business
               | would be insane to consider California for any number of
               | reasons- cost-of-living, (urban) quality of life,
               | regulatory environment, state taxes, etc.
               | 
               | Right now manufacturers should be considering other
               | states. Florida, Tennessee and Texas all are income-tax-
               | free and have business friendly regulatory climates.
               | Several states like Alabama and West Virginia offer
               | extremely low cost-of-living and property costs and
               | likely would negotiate tax abatements.
        
               | apercu wrote:
               | Does anyone truly want to live in Florida, Texas,
               | Alabama, WV? (I left Tennessee off the list because it
               | seems a lot to people _do_ want to live in Nashville
               | anyway).
               | 
               | I grew up in Texas. I've lived in 5 states and a Canadian
               | province.
               | 
               | My sisters house in Fort Worth is assessed a little lower
               | than my house in WI. But her property tax is more than my
               | property tax plus WI state income tax so.....
        
               | murderfs wrote:
               | Florida and Texas are among the fastest growing states in
               | the country, whereas California is losing population.
        
               | scarface_74 wrote:
               | And how many of the traditional demographics of tech
               | workers do you think want to move to Florida? It is
               | currently my home state and I work remotely. But I'm
               | older. I would never want to live here if my wife were
               | younger or I thought there was any chance we wanted to
               | become pregnant.
        
               | decafninja wrote:
               | I don't know, Miami is pretty nice. The only reason I
               | wouldn't consider living in Miami is that if I ever got
               | laid off, the tech job ecosystem is poor at best.
               | 
               | It's not perfect but neither is SFBA, NYC, or Seattle.
        
               | scarface_74 wrote:
               | Until you have to pay the skyrocketing insurance costs.
               | 
               | I am not blaming the government for that. It's just life
               | when you live in an area with frequent hurricanes
        
               | p1esk wrote:
               | After many years in CA I love it in Florida. Palm Beach
               | or Boca Raton are very nice, schools are excellent,
               | weather is perfect 7 months out of 12. And houses are
               | significantly cheaper than in equivalent areas in CA.
               | Less woke culture too.
        
               | astrange wrote:
               | The population increasing in a state is mostly about age
               | structure of the country, not people deciding to move
               | there. California's low growth and Florida's high growth
               | are because Americans are getting older, retiring, and
               | not having children.
        
               | murderfs wrote:
               | This is absolutely false, to the point where there's
               | literally a wikipedia article about net migration out of
               | California:
               | https://en.wikipedia.org/wiki/California_exodus
        
               | decafninja wrote:
               | Florida and Texas don't belong on the same list as WV and
               | Alabama.
               | 
               | I can see why even a deep blue liberal might hold their
               | nose and move to FL or TX. I can't see why you'd do so
               | for AL or WV.
        
               | kagakuninja wrote:
               | Texas actually has higher taxes than California, despite
               | the lack of income tax. They make up for it in property
               | tax AFAIK. California actually has low property taxes for
               | many property owners, thanks to the controversial
               | proposition 13.
               | 
               | Desirable urban areas of California are expensive because
               | we don't have enough housing.
        
               | eric-hu wrote:
               | > Desirable urban areas of California are expensive
               | because we don't have enough housing.
               | 
               | I hear this a lot about California and other places. But
               | I also know lots of people look to buy a 2nd, 3rd, etc
               | property for rental income. For those homeowners, buying
               | more property is rational because it's an investment they
               | already understand. They can reap economy of scale
               | benefits, even at a low multiple like 2-3 properties:
               | water heaters, dishwashers etc become easier to maintain.
               | The incentives are strong for homeowners to buy rental
               | property. And they're in a stronger position to buy than
               | renters.
               | 
               | My gut tells me that 7-8 of every 10 new houses built are
               | bought with the intention to rent it out. It seems like
               | "build more homes" will result in current property owners
               | owning more property to rent out, and most renters will
               | still be renters.
        
               | kagakuninja wrote:
               | Then that would result in lower cost rental units. While
               | not what everyone wants, it would be a great improvement
               | over the current situation. There are also ways to create
               | tax incentives that could discourage your scenario from
               | happening.
        
               | spockz wrote:
               | This is a large reason why many of our larger
               | municipalities now forbid to buy a home in their zone if
               | it isn't (going to be) your primary residence. It seems
               | to be working quite well.
        
               | astrange wrote:
               | The only thing that matters is how many homes there are;
               | stuff like this and vacancy taxes has barely any effect.
               | The main reason to do it is if you want to appear to
               | solve the problem without actually trying to solve it.
               | 
               | The main reason anyone would own two SFHs is that you
               | need to do this in order to move. If you sell your first
               | home before moving you're homeless. And after that it can
               | take a long time to find a buyer.
               | 
               | They're a bad rental investment though because it's way
               | too risky to own one; one bad renter or one roof
               | replacement means you've lost money.
        
               | eric-hu wrote:
               | That sounds like a policy I can get behind. Can you share
               | a name of such a policy or a link to one?
        
               | astrange wrote:
               | Houses are not built with any particular intent.
               | Developers and property owners are not the same people,
               | and don't even have the same interests. Single family
               | homes for rental are actually quite rare and most
               | businesses that try to enter the market fail and leave
               | again.
        
               | taormina wrote:
               | As a Texan, who has considered moving to California many
               | times, this is laughable. I pay maybe $10k-$11k in
               | property taxes (https://tax-
               | office.traviscountytx.gov/properties/taxes/estim...). I
               | work for myself at the moment, but if I took my previous
               | salary of $200k and earned that in CA instead, I would
               | owe CA closer to $15k, and I'm not grandfathered into
               | prop 13. Never once in my career has the math made any
               | sense for living in CA over TX from a tax perspective.
               | And you if you don't own your property, you don't owe TX
               | anything.
        
               | scarface_74 wrote:
               | And you would be crazy to move your company to Florida
               | where if you got on the wrong side of the governor, he
               | would go out of his way to punish you.
               | 
               | Florida is my current home state.
               | 
               | You would be much better off moving to GA, TN, AL or
               | almost any other southern state with more traditional
               | business friendly Republicans.
               | 
               | And this isn't meant to be a Republican vs Democrat
               | thing. More so a "business friendly traditional
               | Republican" vs "culture warrior Republicans".
               | 
               | I have no opinion of how Democrats run their states. I've
               | only lived in two states my entire life - GA and FL. I
               | don't keep up with state politics in other states.
        
             | qwytw wrote:
             | > Taiwan is full of very nice new high-rise development
             | that contains units with lots of bedrooms
             | 
             | But presumably you'll never be able to buy and will have to
             | rent forever? Real estate is significantly more expensive
             | in Taiwan relative to income than in SF/etc.
        
               | J_Shelby_J wrote:
               | Is a market where housing supply meets demand, housing is
               | a depreciating asset. Why would you want to buy if
               | renting is cheaper?
        
               | qwytw wrote:
               | > Is a market where housing supply meets demand, housing
               | is a depreciating asset.
               | 
               | How so? Supposedly house prices increased by 50% in 5
               | years there. So obviously it does not meet demand...
               | 
               | > Why would you want to buy if renting is cheaper?
               | 
               | Because it's usually considerably cheaper long-term? Rent
               | prices go up all the time, so you'd lose a very
               | significant amount of money over 10-20+ years.
        
             | pchristensen wrote:
             | The primary problem for getting 3+ bedroom apartments built
             | in America is school funding. School districts are mostly
             | locally funded (sometimes with a portion funded by the
             | state government) and almost entirely from property taxes.
             | At a very high level, schools are funded by the acre and
             | their expenses scale with the 2nd-5th bedrooms in their
             | district. A 4 bedroom apartment or condo and a 4 bedroom
             | house will usually pay very different tax rates, so local
             | governments are highly incentivized to deny and obstruct
             | large apartments. A 2 bedroom apartment with one child is
             | one thing, but a 4 bedroom apartment with 3-5 children is a
             | huge money loser.
             | 
             | That's also an obstacle to a lot of cities densifying and
             | intensifying. Built out cities have a model that lets them
             | operate, but not capital or land to build and expand in
             | areas of high growth and demand. That's just one of many
             | factors that are freezing our cities in amber.
        
               | ak217 wrote:
               | I don't think your analysis is valid in California.
               | Public high schools in California receive most of their
               | funding on a per-pupil, attendance-weighted basis from
               | the state on a redistributive basis (all property taxes
               | from across the state are pooled and redistributed).
        
               | ghshephard wrote:
               | Parcel Taxes allow wealthy areas like Palo Alto to have
               | much higher qualities of education. School District
               | quality is probably one of the number one factors for
               | families looking for a home.
        
               | ak217 wrote:
               | Most school districts in California don't have any parcel
               | taxes. There are definitely some like Palo Alto and other
               | Bay Area and LA school districts that do, but they serve
               | as a relatively small boost (0 to 25% of the district's
               | budget). But yes, to the extent they constitute a
               | significant portion of the revenue, the dynamics
               | described by the parent post play a role.
               | 
               | Parcel taxes are known to be a poor funding mechanism for
               | this reason, but they were the only viable way to to work
               | around the toxic side effects of Proposition 13
               | (https://ed100.org/lessons/parceltax), which illustrates
               | its long shadow in California state law. Prop 13 is of
               | course responsible for multiple other self-reinforcing
               | anti-growth incentive loops.
        
               | astrange wrote:
               | > The primary problem for getting 3+ bedroom apartments
               | built in America is school funding.
               | 
               | It actually is mostly at the state level, namely fire
               | codes and condo defect laws. America has building codes
               | designed not for safety but to make single family homes
               | cheaper and apartments more expensive. One of the things
               | they do is require double stairways for tall enough
               | buildings, with the result that all apartments must be
               | built like hotels. That plus the requirement for a window
               | on bedrooms makes it hard to fit them in.
        
             | zelon88 wrote:
             | > Non-housing costs are quite low in Taiwan. Food and
             | childcare, in particular, are so much cheaper than
             | California that it's hard to believe.
             | 
             | That statement is the problem.
             | 
             | Nobody wants to rent. There are too many rental properties,
             | and not enough affordable housing. The reason you need
             | rental properties is because you're already trying to make
             | a living from families having a home. You're not supposed
             | to do that. That's supposed to be the prize for the family
             | for assimilating with capitalism. By buying it and renting
             | it back to them you're disincentivizing the working class
             | from working.
             | 
             | But by all means, keep privatizing the shit out of 3
             | bedroom family homes and see what happens. Take every drop
             | of value out of the housing market and bank it. That's what
             | pitchforks are for.
        
               | schmidtleonard wrote:
               | The purpose of capitalism is to establish, reinforce, and
               | perpetuate a class hierarchy where the people on the
               | bottom must constantly pay to exist while the people on
               | top constantly get paid to exist. This shit isn't a side
               | effect, it's the entire point of the exercise.
        
               | graymatters wrote:
               | Spoken like a true Marxist. The purpose of Marxism is to
               | literally kill hundreds of millions of people who oppose
               | the Marxist way. Like they did during the 20th century in
               | the countries where Marxism prevailed (even briefly).
        
               | astrange wrote:
               | It is not spoken like a true Marxist; they didn't even
               | believe this. Here's Engels saying being a renter is not
               | exploitation:
               | 
               | https://x.com/TheOmniZaddy/status/1559949666543878151
               | 
               | Georgism is better though, and the homeownership market
               | isn't about "capitalism".
        
               | madmask wrote:
               | Capitalism gives you opportunities to climb the ladder
        
               | angelaguilera wrote:
               | Capitalism also continuously adds steps to that ladder
        
               | closeparen wrote:
               | The relevant world-historical political philosophy here
               | is feudalism: land ownership and hereditary relationships
               | to land are paramount, people should mostly stay where
               | they were born, merchant/capitalist/productive sources of
               | wealth and income are a suspicious, threatening upstart
               | that we landowners, the legitimate heirs of political
               | power, must keep in check.
               | 
               | The landowners in this case happen to think of themselves
               | as middle class.
        
               | closeparen wrote:
               | Unfortunately in their rejection of capitalism, the
               | people have mostly decided to do feudalism, i.e.
               | legitimacy comes from land ownership and land tenure. It
               | is even hereditary: heirs get to pay much lower property
               | tax than transplants.
               | 
               | I don't think we're going to see eye to eye on
               | capitalism, but even Marx would agree with me that it's
               | better than feudalism.
        
             | ak217 wrote:
             | Absolutely true. Also I find it strange that the companies
             | in question could easily resolve their workforce issues by
             | forming a fund to build better/faster public transit to
             | link up their offices with less NIMBY-dominated cities, but
             | choose not to do so.
        
               | closeparen wrote:
               | Transportation rights-of-way invoke all the same NIMBY
               | problems, only worse because an individual holdout parcel
               | sinks the whole thing.
               | 
               | What they can do is run buses on existing public roads.
               | And they do that. It's still like 1.5+ hours from the
               | Tri-Valley to SF.
        
               | ak217 wrote:
               | I don't think the lack of usable rights-of-way explains
               | public transit issues in the Silicon Valley.
               | 
               | Tech companies had very modest participation in the
               | Caltrain PCEP project, and still barely participate in
               | the Dumbarton rail corridor planning, have made no direct
               | moves to expedite or simplify the BART Silicon Valley
               | expansion, have not attempted to improve the performance
               | of VTA light rail, have not publicly tried to pressure
               | the SF city government to expedite or simplify Caltrain
               | DTC, and have made no proposals to make use of vacant or
               | underutilized rail or ex-rail rights-of-way across the
               | Silicon Valley where no NIMBY opposition exists. (Yes,
               | Atherton is famous for its NIMBYs blocking the original
               | HSR construction plan. It's not currently relevant and
               | can be bypassed.)
        
           | kbolino wrote:
           | The federalized nature of American government means both
           | things can be true simultaneously, even though they seem
           | paradoxical when placed together in juxtaposition. The Feds
           | have supremacy in certain matters, but not all.
           | 
           | Moreover, lobbying is more a question of connections and
           | relationships which are lubricated with money than pure
           | spending power, so it can be easier for a large corporation
           | to nudge things its way at the national and state levels
           | while still struggling to curry influence at the local level,
           | and vice versa for small companies.
        
           | insane_dreamer wrote:
           | > trillion-dollar industries at the forefront of the global
           | economy constantly getting their shit rocked by a few dozen
           | NIMBY retirees at city council meetings
           | 
           | A lot of Intel R&D (and all their manufacturing) is outside
           | the Bay Area, i.e., Oregon and elsewhere, so not sure this is
           | a factor in their case.
        
           | kmeisthax wrote:
           | The thing that makes America a corporate-dominated oligarchy
           | is veto rights. The American middle class has enough
           | political power to get issues on the table but not to
           | overcome an anonymous rich person saying "no". NIMBYism is
           | the same underlying power - vetocracy. So corporations would
           | have to spend way more time fighting their own power to get
           | things done.
        
             | closeparen wrote:
             | This is an insightful synthesis, thank you.
        
         | FredPret wrote:
         | It's grim at INTC but don't forget the CHIPS act and whatever
         | else will follow that. The US government spends 0.5T per month
         | - more than the market cap of all but the top 15 American
         | companies [0] [1]
         | 
         | Not saying it's a good or bad idea, or that it will or won't
         | happen - but if the US government decides to reinvent Intel,
         | they can easily write a cheque that (if spent wisely) might do
         | the trick.
         | 
         | [0] https://companiesmarketcap.com/usa/largest-companies-in-
         | the-...
         | 
         | [1] https://en.wikipedia.org/wiki/United_States_federal_budget
        
           | twobitshifter wrote:
           | Intel is underserving of this investment and the chips act
           | has no teeth to ensure that they follow through and build
           | these facilities and create jobs. They will not follow
           | through and spend the money wisely and that was clear from
           | the moment that bill was drafted.
        
             | bryanlarsen wrote:
             | > has no teeth
             | 
             | CHIPS act money is milestone based, and no money has yet
             | been paid out, according to the article.
             | 
             | That sounds like teeth to me.
        
           | kridsdale3 wrote:
           | Why doesn't the USA just buy out all of Intel's debt, let
           | them start fresh? Call it a Silicon Era War Bond, in reverse.
        
             | mixmastamyk wrote:
             | Better to help another company with better management.
        
         | joe_the_user wrote:
         | I worked for Intel in the 90s.
         | 
         | I think the company always paid "industry standard" compared to
         | other companies paying actually well. And it was a terrible
         | place to work by most objective measures - people got let go
         | quite freely, etc. When Andy Grove writes a book called "Only
         | The Paranoid Survive", he's not committing to employee loyalty.
         | 
         | I think the way Intel got good people, and they did get good
         | people, was by a combination of the opportunity to build
         | something that gets widely used and a cult-like spirit of "are
         | you good and tough enough to survive the bullshit".
         | 
         | But yeah, seems there's no recovery when that approach stops
         | working. And it's disturbing that many of America's "crown
         | jewels" (Intel, Boeing, etc) are basically constructed that
         | way.
        
         | jeffparsons wrote:
         | I think if Intel was a private company then it would have a
         | better chance of recovery via a collection of focused
         | experiments to overcome their biggest technical deficiencies
         | (compared to their competitors) or to, e.g., figure out a
         | compelling new product that the market didn't realise it
         | needed, but that doesn't require solving difficult physics
         | problems.
         | 
         | But to do this sort of thing you need a dictator at the top who
         | is willing to risk a run of negative-profit quarters to fix the
         | company's underlying rot. If you try to do anything like that
         | as a leader of a public company, then shareholders tend to get
         | angry.
         | 
         | I wonder if there's any lesson that could be distilled from the
         | (minority of?) public companies that don't end up settling into
         | a pattern of carefully-managed mediocrity. Is there a unifying
         | theme? I haven't spent enough time thinking about this to even
         | propose an answer other than "cult of personality around the
         | leader" as maybe helping.
        
           | theevilsharpie wrote:
           | > But to do this sort of thing you need a dictator at the top
           | who is willing to risk a run of negative-profit quarters to
           | fix the company's underlying rot.
           | 
           | Private companies still have shareholders that the CEO
           | answers to -- who tend to get angry at taking losses quarter
           | after quarter with no clear path to growth.
        
       | TheAmazingRace wrote:
       | I'm still hopeful of the fact that Intel is, in many aspects "too
       | big to fail", and with their cash on hand, they have enough of a
       | burn rate to turn this ship around, even if they aren't being as
       | intense on cutbacks as they should be.
       | 
       | The question remains, will Intel survive in its current form or
       | could an activist investor stir up a hostile takeover and change
       | the calculus?
        
         | mnau wrote:
         | On the other hand, Intel is small enough to rescue. $82bn
         | (market cap) is not the amount of money it used to be.
        
       | linuxftw wrote:
       | Intel has $29B cash on hand. Their new fabs are being subsidized.
       | Sure, American labor is more expensive than APAC, but I don't see
       | that being a huge differentiator in such an automated
       | manufacturing segment.
       | 
       | My personal rabbit-hole conspiracy is that AI is driving a fire
       | under the national security apparatus, and we're going to see a
       | restriction on AI-chip technology being exported or manufactured
       | overseas. Intel will be in prime position to onshore that
       | manufacturing.
        
         | crowcroft wrote:
         | $29b cash and about $50b in debt. They have a valid business
         | still, but I think you're under appreciating how much of a hole
         | they need to dig themselves out of.
         | 
         | Their current foundries can't just make other chips, and they
         | certainly can't make GPUs for AI (TSMC make Intel GPUs). They
         | are making a new foundry in Ohio, but in Intel's current state
         | and comments they've made to the market it's not guaranteed the
         | foundry will be built.
         | 
         | Intel might make it out of the hole, but it's going to get
         | worse before it gets better. At their current trajectory their
         | is not valid reason for the company to have 100,000 employees.
         | I expect the recent layoffs are the first of a few.
        
           | rstuart4133 wrote:
           | > $29b cash and about $50b in debt.
           | 
           | I know nothing about finance, but I have trouble figuring out
           | how they got themselves into this situation given this
           | https://www.intc.com/stock-info/dividends-and-buybacks :
           | As of June 29th, 2024, we were authorized to repurchase up to
           | $110.0 billion, of which $7.24 billion remain available. We
           | have repurchased 5.77 billion shares at a cost of $152.05
           | billion since the program began in 1990.
           | 
           | Had they not bought there own shares they would be sitting on
           | $70B cash and no debt.
        
             | happycube wrote:
             | Ouuuuch. There oughta (still) be a law.
        
       | bee_rider wrote:
       | I wonder if Global Foundries will become relevant again on the
       | high end. They "gave up," but they are working on some pretty
       | small nodes now, 12nm, obviously not what TSMC is up to, but
       | maybe they'll catch Intel in 10 years. I'm sure they are fine for
       | automotive.
        
         | onepointsixC wrote:
         | They're 4-5 nodes behind Intel today, with no EUV machines let
         | alone High NA EUV. They're just not relevant in leading edge in
         | the slightest.
        
       | ars wrote:
       | Did I misunderstand or did the author advocate a world where the
       | only high-end chip manufacturer in the entire world is TMSC?
       | 
       | Just the one single company, located in a politically unstable
       | area?
       | 
       | And putting aside the politics, if they become a monopoly what do
       | you think will happen next?
        
         | randerson wrote:
         | Purely from the perspective of Intel and their shareholders it
         | makes sense. But it's obviously a terrible idea for the world
         | at large. TSMC and ASML need US based alternatives.
        
       | manav wrote:
       | Intel was getting something like $20 billion from the CHIPS act -
       | but it seems like by the time the fabs would have been ready TSMC
       | will already have them beat to 1.4nm/a14 (also using High NA
       | EUV). Intel has just consistently failed to execute whereas TSMC
       | has been fairly close to schedule.
        
       | newsclues wrote:
       | What happens to the computer and tech industry if Intel fails?
       | 
       | The x86 licence still has value to some others in the space, but
       | it seems like Intel could potentially be sold off for parts if it
       | can't sell correct.
        
         | andreasmetsala wrote:
         | ARM wins the instruction set wars and buys the tech. Future ARM
         | processors will have x86 hardware that offers compatibility
         | with legacy software. Eventually the instruction set is
         | forgotten.
        
           | kbolino wrote:
           | Why/how would the death of Intel kill off AMD too?
        
           | magicalhippo wrote:
           | Got me thinking, from what I've read, modern high-performance
           | cores do a lot of similar tricks and translate everything to
           | uops anyway.
           | 
           | How hard would it be for say AMD to make a performant dual-
           | ISA CPU?
           | 
           | I was thinking somewhat like how virtual 8086 mode[1] worked
           | on 32bit CPUs, ie OS could be ARM-based, but it could run x86
           | processes.
           | 
           | I assume it would be hard to not sacrifice performance for
           | one of the ISAs, but if it's for legacy applications you
           | wouldn't need top speed necessarily.
           | 
           | Are ARM and x86 just too different to make it work? Are there
           | other obstacles?
           | 
           | [1]: https://en.wikipedia.org/wiki/Virtual_8086_mode
        
             | astrange wrote:
             | > Got me thinking, from what I've read, modern high-
             | performance cores do a lot of similar tricks and translate
             | everything to uops anyway.
             | 
             | It's not really true. The uops are highly related to the
             | input instructions. There's enough room in a big desktop
             | CPU to fit a big complex decoder yes, but it's a waste of
             | space you could be using for other things, namely even more
             | caches.
             | 
             | But the main reason not to do it is that you can do
             | emulation or recompilation in software instead.
        
       | 015a wrote:
       | I'm not sure if I buy the thesis entirely (that thesis most aptly
       | being: "Gelsinger does have one fatal flaw: he still believes in
       | Intel, and I no longer do.")
       | 
       | The biggest reason is geopolitics: If escalated confrontation
       | happens with China, Intel becomes one of the most valuable
       | companies on the planet, period. TSMC will finish western fabs
       | eventually, but the delta-t on when they become competitive
       | (tech, capacity & cost, remember) with even Intel's western fabs
       | is... decades, plural? Maybe never? The CHIPS act helped, but
       | TSMC is dragging their feet for very, very (existentially) good
       | reason. Also, remember that TSMC is built entirely on the back of
       | ASML; conflict with China doesn't just block the west's access to
       | the east's fab capacity, it blocks the east's access to the
       | west's tooling to build more and better fabs. TSMC craters in
       | this scenario. Samsung also exists. That's the list of near-SotA
       | fab capacity, globally.
       | 
       | Capacity is another good reason: TSMC is not a bottomless bucket,
       | and every year for the past at least two years Apple has
       | purchased 100% of their SotA fab capacity. No one is competing
       | with Apple's margins (except Nvidia, but that's a bubble market;
       | numbered days). His argument is that there's no market reason for
       | Intel's fabs to exist; we don't have the data to say for certain,
       | but I'd guess that if Intel went to TSMC and said "you're already
       | making lunar lake, make our xeon chips too" TSMC would say "we
       | can't" (especially on SotA nodes, but maybe even near-SotA).
       | They're tapped out, they grow, they're instantly tapped out
       | again, everyone wants what they're selling. Intel fabs Lunar Lake
       | and Arc with TSMC; both very-low volume.
       | 
       | Also worth keeping in mind: Intel was at one time the global
       | leader in chip fabrication; but they lost that crown. People view
       | TSMC as this unassailable beast, but they're just as fallible;
       | and when I hear people say "Well, Intel 18A is probably three
       | years out and by that time we'll have TSMC N2P with backside
       | power delivery so who will even care about Intel 18A" are just
       | extrapolating history. That's a dangerous game when all these
       | rankings and valuations are based on asymptotically approaching
       | the limits of the laws of physics. And while it is unlikely that
       | Intel will take the lead again, TSMC showing any sign of
       | faltering will raise the relative value of the #2 companies.
       | 
       | Intel is not in a good spot, but they're still an interesting
       | business, they're still designing some of the best chips on the
       | planet, and with the right decisions could grow to be even better
       | than interesting. IMO, this article is missing a lot of the hard
       | analysis and data that Stratechery is usually known for; I don't
       | feel you can have a researched discussion on Intel without
       | talking about fabrication volume or their concerning levels of
       | debt, but he didn't mention either of those things. Heck, more
       | than one passing mention of China feels kinda important to the
       | topic.
        
         | B1FF_PSUVM wrote:
         | > remember that TSMC is built entirely on the back of ASML;
         | 
         | Probably a few people east of the Netherlands have noticed and
         | are doing something about it.
        
           | astrange wrote:
           | That's not the only thing you have to replace. ASML has
           | layers of sole suppliers themselves, like Zeiss who make
           | their lenses.
           | 
           | EUV itself was developed by US government labs; ASML is a
           | sole supplier of it because we licensed it to them and
           | refused to give it to Nikon/Canon for no good reason.
        
         | pphysch wrote:
         | > The biggest reason is geopolitics: If escalated confrontation
         | happens with China
         | 
         | If escalated confrontation happens with China, and that is
         | massive IF that is dependent on insanely belligerent action
         | from the West like giving nukes to Taiwan, then new
         | semiconductor manufacturing will be the least of our worries. A
         | Chinese blockade on Chinese and East Asian exports to US would
         | result in total economic collapse in USA over a relatively
         | short period. $100,000,000,000s in real demand for goods no
         | longer being met over the span of weeks.
         | 
         | The possibility of direct conflict with China is the domain of
         | armchair strategists that consume too many Reddit headlines,
         | Peter Zeihan, Economist, etc., and individuals directly
         | downstream of the defense budget, where Threat Inflation is
         | good business. It's really not something that serious,
         | intelligent people are anticipating on the horizon (again,
         | outside of the wildcard of an insane new administration in
         | Washington). Even the insane combo of Matt Pottinger, Mike
         | Pompeo, John Bolton didn't get close to manifesting it
         | (allegedly, some of their attempts were undermined by
         | backchannel diplomacy from Gen. Milley and the JSOC). So what's
         | the real risk?
        
           | 015a wrote:
           | There are a thousand different ways that "escalated
           | confrontation" with China can fall short of "direct conflict"
           | while still negatively impacting TSMC's ability to allocate
           | production to the west. That's why I said "escalated
           | confrontation". If the only ways you can think of it
           | happening is what Zeihan says, then that's simply a failure
           | of your own creativity.
           | 
           | One moderately realistic one: Taiwan experiences something
           | similar to what happened in Hong Kong, during a time when US
           | leadership is not motivated to aid in its defense. This isn't
           | a situation where China and the US are at war; we're still
           | trading with China; and broadly speaking the economies of
           | both countries are fine. But, Taiwan isn't, and whether it
           | surfaces as key TSMC talent/tech leaving the country,
           | military action, or just PRC subtly shifting TSMC's
           | allocation priorities toward the homeland: western chip
           | manufacturers could benefit. This isn't seemingly likely to
           | happen in the next four years given the stated priorities of
           | both sides of the political isle; but the right is shifting
           | more-and-more isolationist every year, and no one arguing in
           | good faith would speak with such certainty as you have on
           | what happens 2028 and onward.
        
           | mrighele wrote:
           | > that is dependent on insanely belligerent action from the
           | West like giving nukes to Taiwan
           | 
           | The USA administration has stated several times that they
           | would defend Taiwan if China invaded (see for example [1]).
           | Would you consider that an "insanely belligerent action from
           | the West"?
           | 
           | You can argue that China is not going to invade any time
           | soon, but I wouldn't consider the probability negligible.
           | 
           | [1] https://thediplomat.com/2024/06/what-to-make-of-bidens-
           | lates...
        
       | cs702 wrote:
       | The OP makes a compelling case that Intel's foundry operations
       | have fallen so far behind that they are no longer economically
       | viable on their own, in the face of current market forces, i.e.,
       | Intel's foundry business may not be able to earn a positive
       | return on the tens of billions of dollars of capex now required
       | to catch up with TSMC.
       | 
       | If the US truly views having a domestic foundry as critical to
       | national security, the US federal government has no choice but to
       | pay up big time to support Intel's foundry business until --
       | hopefully, eventually -- that business is able to compete
       | profitably against TSMC to manufacture chips for Apple, Nvidia,
       | AMD, etc.
       | 
       | Oh, how the mighty have fallen!
        
         | cogman10 wrote:
         | There are a slew of foundries in the US already that aren't
         | intel and are open to manufacturing for non-intel products. For
         | example, Global Foundries.
         | 
         | I just don't see what benefit at this point the US government
         | would see investing in intel when they aren't really a whole
         | lot better at the game at this point vs pretty much anyone
         | else.
        
           | wmf wrote:
           | Intel is a decade ahead of other US foundries.
        
         | kazen44 wrote:
         | Also, unlike TSMC, which the taiwainese goverment sees as a
         | national asset and which actually garuantees them economic co-
         | dependence with the west and thus independance from china,t he
         | US seems to have forgotten that having your own manufacturing
         | capability is very important for national security.
        
       | jhallenworld wrote:
       | The Altera merger pain is maybe enlightening.
       | 
       | Altera 10-series FPGAs were massively delayed due to Intel's 10
       | nm fab problems. But I speculate that there was also a big
       | difference in toolchains, does anyone know for sure? I mean
       | Altera was using TSMC previously, and I presume were using
       | industry standard tools: Cadance / Synopsis. But I would guess
       | Intel was running their fab on home-grown tools... what is the
       | status these days? For example I know for sure that IBM's
       | synthesis was "Booledozer".
       | 
       | It's interesting because maybe Intel will spin out the fab
       | business. But are they immediately ready to become a commercial
       | fab business instead an Intel-only business? What's the toolchain
       | like for Intel fab?
        
         | wmf wrote:
         | Historically Intel did use non-standard EDA tools which is one
         | reason they had trouble getting outside customers onto 10 nm
         | (besides the fact that 10 nm didn't work). Some Intel
         | acquisitions like Fulcrum and Barefoot never used Intel fabs.
         | 
         | I think they're supporting a more standard toolchain starting
         | with 18A.
        
           | jhallenworld wrote:
           | I see, this is their newest node or close to it.
           | 
           | https://www.anandtech.com/show/21504/intel-18a-status-
           | update...
           | 
           | "For Intel, getting an external PDK out for a leading-edge
           | process node is no small feat, as the company has spent
           | decades operating its fabs for the benefit of its internal
           | product design teams. A useful PDK for external customers -
           | and really, a useful fab environment altogether - not only
           | needs process nodes that stick to their specifications rather
           | than making bespoke adjustments, but it means that Intel
           | needs to document and define all of this in a useful,
           | industry standard fashion. One of the major failings of
           | Intel's previous efforts to get into the contract foundry
           | business, besides being half-hearted efforts overall, is that
           | they didn't author PDKs that external companies could easily
           | use. "
           | 
           | But some bad news today:
           | 
           | https://www.reuters.com/technology/intel-manufacturing-
           | busin...
        
       | SubiculumCode wrote:
       | meanwhile, Intel's chips (and others) are still being used to
       | build Russian bombs killing Ukrainians.
       | 
       | https://www.tomshardware.com/pc-components/cpus/russia-buys-...
        
         | protomolecule wrote:
         | President Zelensky can stop it in a day.
        
       | hash872 wrote:
       | Not a trade lawyer but as I understand it, WTO treaty obligations
       | specifically forbid the kind of purchase guarantees that Ben's
       | arguing for here. Part of the whole point of the WTO is to to
       | pull up the ladder and prevent countries from doing what Japan,
       | South Korea, and Taiwan successfully did to become rich. So this
       | kind of support for domestic manufacturers is not allowed
        
       | synergy20 wrote:
       | In June 2021, Gelsinger named 22-year Intel vet Sandra Rivera to
       | head up a new Datacenter and AI Group. Rivera, who spent two
       | years as Intel's chief people officer before taking on her new
       | role, describes what Intel staffers are looking to get out of
       | their relationship with the company, using terms that would have
       | been unlikely to come up in its original heyday. "For sure, we
       | are in an age now where our employees are looking for a deeper,
       | richer connection to the purpose of the organization," she says.
       | "They care about diversity, equity, inclusion. They care about
       | the planet."
        
       | umvi wrote:
       | > today AMD has both better designs and, thanks to the fact they
       | fab their chips at TSMC, better processes
       | 
       | On paper AMD is better, but in the scientific community, it seems
       | that Intel has much better performance for things like NumPy and
       | SciPy. The reason seems to be "Intel(r) MKL"
       | (https://en.wikipedia.org/wiki/Math_Kernel_Library).
       | 
       | I'm using a lot of weasel words like "seems to" because I haven't
       | rigorously proved it. But anecdotally, my company's AI pipelines
       | which are NumPy/SciPy heavy run an order of magnitude faster (2
       | seconds vs. 20 seconds) on my laptop's Intel i7 than the do on my
       | Ryzen 7, despite the Ryzen 7 being a newer gen than the i7.
        
       | benreesman wrote:
       | I've heard the theory that Intel is physically incapable of doing
       | the lithography transition they need to do without missing at
       | least one full release cycle. Which should be bad news but
       | shouldn't be existential.
       | 
       | The theory goes that any CEO who does the necessary thing will be
       | fired, so either they won't do it, or the board will replace them
       | with someone who won't do it.
       | 
       | That kind of market failure can destroy arbitrary value.
        
       | cbanek wrote:
       | Sidequest:
       | 
       | "I'm going to do Windows and then I'm going to do Windows Mobile
       | and I'm going to do Windows embedded." (all on intel x86)
       | 
       | As someone who worked on Windows Mobile and Windows Embedded,
       | it's funny because that's what management was hoping, but it was
       | so different. I don't think any of the phones had an x86 chip in
       | them, although that was our debugging setup so we could use
       | vastly more powerful desktop machines as devkits (although we
       | still had devices to). Having to port parts of Windows to ARM and
       | even MIPS was a giant PITA.
       | 
       | Windows Embedded is closer since it was based on XP, but also a
       | completely different branch from what I remember from Win Mobile.
       | 
       | A lot of people think it's easy to port things, and hard to write
       | things. With really, really complicated software, it's still
       | really hard just to port things.
        
       | benreesman wrote:
       | I generally like Stratechery but this is not up to the usual
       | standard.
       | 
       | To the extent that CISC means anything it means "backwards
       | compatible". Modern ARM cores have multi-step decode and issue:
       | to the extent that RISC means anything it means "we developed
       | this with twenty year's hindsight so we don't have to do a lot in
       | microcode yet." In die area, in TDP, in wafer consumption, it's
       | just not a big cost.
       | 
       | To the extent that Intel missed AI so did everyone: right now
       | there's one target and that's NVIDIA, no amount of HBM/TC ratio
       | tuning is going to change that. Like 3 of 17 Ray/Anyscale
       | tutorials target Habana. The Gaudi stuff works fine if you're
       | willing to pay the "last year's model" tax all non-CUDA does.
       | 
       | And bigger picture, on semiconductors it's the geopolitics people
       | who are watching the bright line: semiconductors are a major
       | power arena, the markets will get adjusted along those lines.
        
       | dzonga wrote:
       | yeah intel's foundry business might not be competitive in the
       | short term. but it's better than nothing. they can focus on other
       | industries that don't need high performance / for low power.
       | 
       | because if you yield the whole thing to tsmc. you won't be able
       | to recover the expertise, which is catastrophic for both intel /
       | USA.
        
       | ghostpepper wrote:
       | Anyone else notice how many typos are in this article? Does no
       | one proofread anymore?
        
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